Forbes - Trump’s Crypto Assets Are Nonsense. The Cash They Throw Off Is Very Real
Donald Trump's crypto assets have been reported to add tens of billions to his fortune, but Forbes values them at zero due to their unsellability. Trump's venture, World Liberty Financial, sells tokens that cannot be resold and offer no profit share, yet it has added hundreds of millions in liquid assets to his balance sheet. The project initially struggled with sales but saw a boost after a $30 million investment by Justin Sun. By the time of Trump's inauguration, the project had raised $300 million, with Trump's share estimated at $200 million. Additionally, Trump launched a digital meme coin, which, despite lacking financial purpose, could potentially be more lucrative than World Liberty Financial. The exact financial gain from this venture remains unclear due to unknown factors like ownership splits and average sale prices.
Key Points:
- Trump's crypto assets are theoretically valuable but unsellable, leading Forbes to value them at zero.
- World Liberty Financial, a Trump crypto venture, initially struggled but later raised $300 million, with Trump's share at $200 million.
- Justin Sun's $30 million investment significantly boosted World Liberty Financial's sales.
- Trump's digital meme coin lacks financial purpose but could be highly lucrative.
- Exact financial gains from Trump's crypto ventures are unclear due to unknown ownership splits and sale prices.
Details:
1. 💰 Trump's Crypto Valuation: Fact or Fiction?
- Trump's reported increase of tens of billions of dollars in fortune due to a digital meme is based on theoretical prices for crypto assets, which he cannot sell currently.
- Forbes values Trump's crypto assets at zero, as the reported valuation is not based on actual liquid assets or cash flow.
- The implications of Trump's theoretical crypto fortune include potential misrepresentation of his financial status and a lack of liquidity in these assets.
2. 📉 Financial Maneuvers and Revenue Streams
- Trump significantly increased his liquid assets by approximately $290 million through crypto sales with World Liberty Financial.
- The venture sells 'gold paper' tokens, which cannot be resold and promise no future profits, highlighting a unique revenue model.
- An initial agreement stipulated that $30 million would stay in the project, and 75% of remaining funds would go to Trump's company.
- Despite early struggles, selling only $15 million worth of tokens, a $30 million investment by Justin Sun, a crypto entrepreneur, after the November 5th election bolstered revenue.
- Ultimately, token sales reached $94 million, with Trump receiving an approximate $48 million share.
- World Liberty Financial announced total sales of $300 million, including a $26 million boost over a 29-hour period before inauguration, leading to an estimated $200 million cut for Trump.
- These financial maneuvers underscore the strategic importance of leveraging new financial instruments and partnerships to augment revenue streams.
3. 🔄 New Token Supply and Price Surge
3.1. Token Supply Announcement and Price Surge
3.2. Financial Outcomes and Implications
4. 🎉 Digital Memes and Potential Earnings
- The Trump meme coin was launched strategically last Friday to coincide with inaugural buzz, leveraging media attention for maximum impact.
- The coin's website clearly states that it is not an investment opportunity but a collectible for entertainment purposes, which may influence buyer perception and regulatory scrutiny.
- The financial structure of the coin remains unclear, suggesting potential for high earnings, especially given historical precedents in the digital collectibles market.
- Trump partnered with CIC Digital LLC and Fight Fight Fight LLC to issue 200 million memes, each priced around $43 initially, indicating a significant potential revenue stream.
- Lack of clarity on the average selling price and ownership distribution makes precise earnings predictions challenging, yet estimates suggest substantial returns if a 50% stake is assumed and sales reach an average of $7, potentially generating $700 million.
- This venture reflects a growing trend of monetizing digital content through unique, themed collectibles, which could reshape traditional revenue models.
5. 🔍 Further Reading and Conclusion
- For comprehensive insights on taxes, refer to Dan Alexander's article on Forbes.com for detailed coverage.
- Kieran Meadows from Forbes signs off, encouraging continued engagement with their content.